The pound is looking for a foothold
09.12.2014
The British pound and its behaviour in recent months is a difficult instrument for observations and making conclusions. Take at least the fact that there is almost no speculative "swing" in the pair. Investors, who are confident in the future prospects of the pound, just hold their position and wait. Factors for pressure - refers to the objective fundamental reasons - there are almost none.
I already spoke about the reason to wait. This is the specification of future monetary steps of the Bank of England. Once the regulator will outline more clearly its future actions - preferably in correlation with the time - the pound will "jump" up.
Indirectly, on the development of such a scenario indicates yesterday's reaction of the GBP/USD pair to the document published by the Bank of England on rising borrowing costs, which should not complicate the economic recovery of the country. NMG Consulting on behalf of the Bank of England conducted a study, the results of which showed that in the structure of UK households only 1% of the total remains vulnerable to higher interest rates. All the others will feel great at more stringent fiscal conditions. The pound rose during the day, moving away from the minimums of fifteen months.
In other words, for now the pair will remain in a sideways corridor, but the main newsmaker for the pound is still the Bank of England.
RoboForex Analytical Department
I already spoke about the reason to wait. This is the specification of future monetary steps of the Bank of England. Once the regulator will outline more clearly its future actions - preferably in correlation with the time - the pound will "jump" up.
Indirectly, on the development of such a scenario indicates yesterday's reaction of the GBP/USD pair to the document published by the Bank of England on rising borrowing costs, which should not complicate the economic recovery of the country. NMG Consulting on behalf of the Bank of England conducted a study, the results of which showed that in the structure of UK households only 1% of the total remains vulnerable to higher interest rates. All the others will feel great at more stringent fiscal conditions. The pound rose during the day, moving away from the minimums of fifteen months.
In other words, for now the pair will remain in a sideways corridor, but the main newsmaker for the pound is still the Bank of England.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.